Zscaler Q2 Loss Deepens To US$0.21 EPS And Tests Profitability Narratives

Simply Wall St.03-01

Fresh off its Q2 2026 print, Zscaler (ZS) reported revenue of US$815.8 million and a basic EPS loss of US$0.21, with net income excluding extra items at a loss of US$34.3 million, setting the tone for...

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The company has seen revenue move from US$647.9 million in Q2 2025 through to US$815.8 million in Q2 2026, while quarterly basic EPS over that stretch has ranged from a loss of US$0.05 in Q2 2025 to a loss of US$0.21 in the latest quarter. As a result, the...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","LU2286300806.USD":"Allianz Cyber Security AT Acc USD","LU2125909759.SGD":"Natixis Thematics Safety H-R/A SGD","BK4585":"ETF&股票定投概念","BK4097":"系统软件","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","ZS":"Zscaler Inc.","LU2125909916.SGD":"Natixis Thematics Safety R/A SGD","BK4560":"网络安全概念","LU1923622291.USD":"Natixis Thematics Safety R/A USD"},"translate_title":"Zscaler第二季度每股收益亏损加深至0.21美元，盈利能力受到考验","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ZS":1},"content_text":"Fresh off its Q2 2026 print, Zscaler (ZS) reported revenue of US$815.8 million and a basic EPS loss of US$0.21, with net income excluding extra items at a loss of US$34.3 million, setting the tone for how investors will read the quarter. The company has seen revenue move from US$647.9 million in Q2 2025 through to US$815.8 million in Q2 2026, while quarterly basic EPS over that stretch has ranged from a loss of US$0.05 in Q2 2025 to a loss of US$0.21 in the latest quarter. As a result, the focus now is firmly on how quickly margins can improve from here. See our full analysis for Zscaler. With the headline numbers on the table, the next step is to see how this earnings print lines up with the most common stories around Zscaler, and where the data may challenge some of those views. See what the community is saying about Zscaler NasdaqGS:ZS Revenue & Expenses Breakdown as at Feb 2026 AdvertisementTTM losses of US$67.6 million keep profitability in focus  On a trailing 12 month basis, Zscaler booked total revenue of US$3.0b and a net income loss excluding extra items of US$67.6 million, with basic EPS over that span at a loss of US$0.43.  Bulls point to forecasts of 15.8% annual revenue growth and 51.5% annual earnings growth as a sign the current loss profile is temporary, but the numbers still ask you to be patient.\n     The bullish view leans on an earnings swing from a loss of US$38.8 million today to US$310.6 million by around 2028, while the latest TTM data still shows Zscaler in the red at US$67.6 million of losses. That optimism also assumes margins move from roughly a 1.5% loss to a 6.4% profit in three years, which contrasts with the current pattern of quarterly net losses between US$4.1 million and US$34.3 million over the last six reported quarters.    Have a closer look at how optimistic investors think this loss profile could flip into profits over time with the 🐂 Zscaler Bull Case. Premium 7.8x P/S and insider selling add caution  Zscaler is trading at a trailing P/S of 7.8x versus a peer average of 6.5x and a US Software industry average of 3.4x, while insider activity over the past three months has been skewed toward selling.  Bears argue that paying above peer P/S multiples for a business that is still loss making on US$3.0b of TTM revenue leaves little room for disappointment, especially with recent insider selling in the mix.\n     The cautious narrative stresses that even with revenue forecasts in the high teens to low 20% range, Zscaler is not expected in that view to reach profitability within the next three years, yet its 7.8x P/S sits well above both peers and the broader industry. On top of that, the bearish camp models earnings only reaching about US$576.9 million by 2029 to support analyst targets, which is a big jump from the current TTM loss of US$67.6 million and assumes a P/E multiple well above the current US Software industry level.    Skeptical about paying a premium multiple while the company is still loss making and insiders are selling? See how that argument is built out in the 🐻 Zscaler Bear Case. DCF fair value and US$251.03 target send mixed signals  Against a current share price of US$146.99, one DCF fair value estimate in this dataset sits at US$273.22, while an allowed reference analyst price target is US$251.03, both above where the stock trades today.  The consensus style narrative highlights strong growth forecasts and a modeled fair value above the current price, but that sits next to premium multiples and an unprofitable TTM income statement.\n     On one side, revenue is forecast to rise about 15.8% per year with earnings projected to grow 51.5% per year and profitability expected within three years, which helps support both the US$273.22 DCF fair value and the US$251.03 target relative to the US$146.99 share price. On the other, Zscaler still reports a TTM loss of US$67.6 million and trades at a higher P/S than peers, so for those forecasts and valuation marks to make sense, investors need to be comfortable with paying up for growth while the business remains in loss making territory today.    Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Zscaler on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. After all of this, do you feel the story leans more bullish or cautious, and how quickly do you want to test that view for yourself? It is worth checking both sides of the ledger, including 2 key rewards and 1 important warning sign. See What Else Is Out There Zscaler is still reporting TTM losses on US$3.0b of revenue, trades on a premium 7.8x P/S, and shows insider selling alongside unproven profitability. If paying up for a loss making stock with premium multiples feels uncomfortable, you may wish to adjust your risk return balance by checking out 77 resilient stocks with low risk scores today for potentially steadier alternatives.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Zscaler might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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